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Ikea To Hike Prices As Supply Chain Headaches Continue

Ikea is set to raise prices by an average of nine per cent globally, as supply chain issues continue to bite.

The Swedish furniture and home goods giant expects disruptions in areas such as logistics and raw materials to continue into 2022, with no break in sight for the foreseeable future. Prices will be raised across its markets, with variations depending on local conditions; the company says its biggest cost increases from transport and purchase prices have been in North America and Europe.

Tolga Öncü, Ikea.

According to Tolga Öncü, Retail Operations Manager at Ikea Retail (Ingka Group), the company attempted to keep prices as stable as possible during the pandemic.

“Unfortunately, now, for the first time since higher costs have begun to affect the global economy, we have to pass parts of those increased costs onto our customers.

“We are taking this difficult step right now to ensure we can live up to our purpose to create a better everyday life for the many people, and to safeguard our competitiveness and the resilience of our company. However, affordability will always be a cornerstone for us.

“Our intention is to give back to the customer any decrease in purchase prices we get,” he said.

The retailer plans to open 30 new “customer meeting points” around the world, including traditional stores, planning studios, and inner-city stores with same day delivery, in this financial year.

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